Lease Financing of Coastwise Trade Vessels

The U.S. Coast Guard issued a Supplemental Notice of Proposed Rulemaking (SNPRM) to amend its regulations on documentation of vessels engaged in U.S. coastwise trade. The proposed amendments address statutory amendments eliminating certain barriers to foreign financing by lease for such U.S.-flag vessels. The proposal is intended to clarify the information needed for the Coast Guard to determine the eligibility of a vessel financed in this manner for a coastwise endorsement. Because the regulation as proposed would be more restrictive than current practice, vessels approved under this practice would be allowed to continue operation so long as there is no substantial change in the arrangement. Comments on the proposal should be submitted by October 8, 2002 Source: HK Law